What is the correct ACC plan for you?
We are fortunate to have ACC in New Zealand, especially when it comes to being covered for accidents that are not work-related. Everyone in New Zealand is covered by ACC when injured by accident. In plain English, it does not matter what you were doing at the time you were injured, whether you’re playing golf of at work you’re covered. It does not matter who was at fault. ACC will cover you, as long your injury falls within New Zealand Law.
Which ACC Plan is right for you?
There are a few options for self-employed, and what plan you are on will determine what happens at claim time and how much you are eligible to claim and what information you need to supply. ACC is an insurance product, and therefore you should seek advice from ACC or an insurance professional who know how to assess what is the correct ACC plan for you and how much you cover you need. We will work with your other professional advisers, but ultimately we need to consider what private cover you have and what you need when it comes to setting up your ACC correctly.
Are you on Wages or Drawings?
If you are self-employed, you may choose to take your income in the form of wages and pay your PAYE each time you get paid. Being on PAYE makes handling taxation easier from a payment and accounting point of view, but it may not necessarily be your best option.
Do you take Drawings instead of wages?.
Drawings require you to be more disciplined when it comes to taxation but do offer some better options when it comes to your ACC options. You can apply for CoverPlus Extra if you are self-employed and working:
- full time (more than 30 hours per week on average)
- part-time (less than 30 hours per week on average) and have earnings above the CPX minimum for the current year
- a non-PAYE shareholder, i.e. you don’t receive PAYE deducted earnings from a company you’re a shareholder of as your pay levies through PAYE.
Cover Plus Extra also provides certainty because you and ACC agree to an insured amount from the outset. You provide the financial data when your cover is set up, so you know how much you are insured for, as well as your levies for the year.
Does this mean you don’t need private Income Protection Insurance?
Private Income Protection Insurance covers sickness as well as accident, so ACC and Private Income Protection Insurance need to be set up correctly so one compliments the other and you get maximum value at claim time. We understand it comes down to affordability and budget and we consider that. Both solutions can be set up to meet your financial needs and budget. Contact us to talk more about setting your ACC Cover up correctly.